Direct Spending on Healthcare
The typical non-elderly single person with individual market or exchange coverage spends $4,850 per year (19% of their $26,000 income) on health. This includes $1,700 (7% of their income) in out-of-pocket health spending, $1,850 (7% of their income) in health insurance premiums, and approximately $1,300 (5% of their income) in state and federal taxes that fund health programs.
Additional Contributions by Employers
In this scenario, we estimate that the employer is contributing an additional $400 in Medicare payroll taxes, not shown in the chart above.